Jim Cramer's 'Mad Money' Recap: Why You Must Stay the Course

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- Why should investors stay in the market and endure declines like today's? Jim Cramer said on  Mad Money Tuesday that many hedge fund managers may be locking in their gains and going home but home gamers need to do the opposite and be ready to seize the opportunities that are being created.

Cramer said the fundamentals of individual companies always matter, and here in the U.S. -- where commodity prices are falling and employment is on the mend -- those fundamentals are looking pretty good. Today's selloff was not about the U.S., however, it was about Russia, a very real threat to the global economy.

Put simply, Cramer said that if Russia cuts off the supply of natural gas to Europe, that whole continent will fall back into recession. That would mean that earnings estimates all over the globe would need to be lowered. On the other hand, this crisis is clearly man-made, so if a resolution is found stocks could rally quickly.

That's why Cramer said for now he'd stay the course, picking up high-quality stocks on a pullback. Don't think the world is going to end, he concluded. There are still opportunities being created every day.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Carly Garner over the chart of natural gas heading into the lucrative winter heating season. This time last year Garner called the bottom in natural gas, and she's seeing similar patterns again this year.

Garner used a daily chart of natural gas futures and compared that to the Commitment of Traders, or COT, report. The COT measures the positions of both large and small speculators as well as commercial companies holding futures for hedging purposes. Garner noted that last year, and again this year, large speculators were very oversold, which led to a snapback rally last year that should occur again this year as the bears are forced to cover their short positions.

Turning to a weekly chart, Garner noticed that both the stochastics and the Williams' Oscillator, or WSM, also indicate an oversold condition.

Back on the daily chart, however, the stochastics are not yet in a strong oversold condition, which means more downside could be possible before the rally occurs. With a floor at $3.88, there's not a lot of downside risk, though, which makes buying in now likely the right move.

Global Payments: Western Union

For the second installment of his look into the global payments business, Cramer dove into the money transfer companies such as Western Union (WU)  to see if they'll be able to survive the digital revolution.

Cramer said that nothing kills a business faster than too much competition, and the money transfer business is the poster child for too much competition. Western Union's market share has fallen from 21% to just 13% in recent years, while rivals like Moneygram (MGI) and Xoom (XOOM) haven't fared much better.

There are many new niche players entering the payments business, Cramer explained. Many are either online-only, thereby eliminating the costly overhead of the incumbent players, or they operate in only the most lucrative of countries, also saving on costly overhead. Even Moneygram, which derives one-third of its revenue from Wal-Mart (WMT) , is now in competition with Wal-Mart's own money transfer service.

Cramer said of the three, only Western Union is protected by its 3% dividend. But he wouldn't buy any of these stocks because new rules in many countries are eliminating exclusivity and adding further to erosion of the business.

Executive Decision: Frank Semple

For his "Executive Decision" segment, Cramer spoke with Frank Semple, chairman, president and CEO of MarkWest Energy Partners (MWE) , a stock that's risen 25% since Cramer last checked in just a few months ago.

Semple said the Marcellus shale in Ohio and Pennsylvania is now the largest operating natural gas field in the U.S., and in just a few short years has proven to be bigger and better than anyone every thought possible.

But while MarkWest remains the predominant player in both the Marcellus and adjoining Utica shale regions, Semple said MarkWest is growing throughout its operation, including Oklahoma and Texas. He noted that finding the right people is one of the biggest challenges MarkWest has and the company is putting people to work across the nation.

With the natural gas industry poised to grow 57% by 2040, Cramer said MarkWest continues to have a terrific growth profile.

Lightning Round

In the Lightning Round, Cramer was bullish on Priceline Group (PCLN) , SunOpta (STKL) , Hain Celestial Group (HAIN) and WhiteWave Foods (WWAV) .

Cramer was bearish on Core Labs (CLB) , HollyFrontier (HFC) , Dean Foods (DF) , Denbury Resources (DNR) and B&G Foods (BGS) .

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said investors looking for positives in the market just need to look at Allergan (AGN) and Apple (AAPL) , the latter Cramer owns for his charitable trust, Action Alerts PLUS.

Cramer said that Allergan is a fast-growing pharmaceutical company that trades at just 17 times its 2106 earnings and has suitors lining up to buy the company at higher prices.

Meanwhile, Apple can't meet demand for its new iPhones. While some analysts fret a delayed launch in China, Cramer said he sees it, along with the Apple Watch, as big positives for 2015.

Finally, Cramer mentioned AutoZone (AZO) as another favorite starting with the letter "A". He said he's not as bullish as he was given that the company is growing too quickly, but he still likes the company.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.

More from Jim Cramer

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home